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A manufacturing company produces two products, A and B. The selling prices and costs per unit are as follows: Product A: Selling price $50, variable
- A manufacturing company produces two products, A and B. The selling prices and costs per unit are as follows:
- Product A: Selling price $50, variable cost $30, fixed cost $10
- Product B: Selling price $70, variable cost $40, fixed cost $20 If the company can sell up to 1,000 units of each product and has a maximum of $30,000 in fixed costs, how many units of each product should it produce to maximize profit?
- Table Format:
The table below represents the costs incurred by Company XYZ for producing 10,000 widgets in a month:
Cost Category | Amount |
Direct Materials | $20,000 |
Direct Labor | $15,000 |
Manufacturing Overhead | $25,000 |
If the company wants to achieve a 30% markup on the cost of production, calculate the selling price per widget.
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